Summary
The Allstate Corporation reported a net income of $165 million for the third quarter of 2011, a decrease from $367 million in the same period of 2010. This decline was largely driven by a significant increase in catastrophe losses, particularly impacting the Property-Liability segment, which reported an underwriting loss of $311 million compared to an underwriting income of $266 million in the prior year's quarter. The Allstate Financial segment, however, showed strong performance with net income of $183 million, more than double the $85 million reported in Q3 2010, driven by net realized capital gains and improved operational results. For the first nine months of 2011, consolidated net income fell to $64 million from $632 million in the prior year. The Property-Liability segment incurred a net loss of $230 million for the period, a sharp contrast to the $794 million net income in the first nine months of 2010, primarily due to higher catastrophe losses and unfavorable reserve reestimates. The Allstate Financial segment contributed significantly with $446 million in net income, demonstrating resilience and growth. The company also completed a $1.01 billion acquisition of Esurance and Answer Financial in early October 2011, which is expected to expand its reach in the direct-to-consumer market.
Financial Highlights
35 data points| Revenue | $8.24B |
| Interest Expense | $92.00M |
| Net Income | $175.00M |
| EPS (Basic) | $0.34 |
| EPS (Diluted) | $0.34 |
| Shares Outstanding (Basic) | 512.00M |
| Shares Outstanding (Diluted) | 514.20M |
Key Highlights
- 1Consolidated net income for Q3 2011 was $165 million, down from $367 million in Q3 2010.
- 2Property-Liability segment reported a Q3 2011 underwriting loss of $311 million, a significant decrease from an underwriting income of $266 million in Q3 2010, largely due to higher catastrophe losses.
- 3Allstate Financial segment's net income rose to $183 million in Q3 2011 from $85 million in Q3 2010.
- 4Premiums earned in Property-Liability decreased by 1.0% to $6.43 billion in Q3 2011.
- 5Net realized capital gains were $264 million in Q3 2011, a turnaround from net realized capital losses of $144 million in Q3 2010.
- 6Shareholders' equity decreased slightly to $18.10 billion as of September 30, 2011, from $19.02 billion as of December 31, 2010.
- 7The company completed the acquisition of Esurance and Answer Financial for $1.01 billion in early October 2011.